The US Securities and Exchange Commission (SEC) has taken legal action against media and entertainment company Impact Theory for conducting an unregistered offering of crypto asset securities as Non-Fungible Tokens (NFTs). Impact Theory raised approximately $30 million from hundreds of investors, including those across the United States.The SEC’s order reveals that Impact Theory introduced three tiers of NFTs, known as Founder’s Keys, labeled as “Legendary,” “Heroic,” and “Relentless,” between October and December 2021. Impact Theory actively promoted the “Founder’s Keys” as an investment opportunity, suggesting that investors stood to profit if the company achieved its goals.The SEC determined that these NFTs constituted investment contracts and thus fell under the definition of securities. As a result, Impact Theory violated federal securities laws by offering and selling these “crypto asset securities” without proper registration or exemption.Impact Theory has agreed to a cease-and-desist order without admitting or denying the SEC’s findings. The company has been ordered to pay over $6.1 million in disgorgement, prejudgment interest, and civil penalties. A Fair Fund will also be established to reimburse investors for the amounts they paid to acquire the NFTs.This enforcement action taken by the SEC against Impact Theory for its allegedly “unregistered NFT offering” marks a significant development in the regulatory landscape surrounding the crypto industry. The outcome of this case could set a precedent for future regulations and shape the trajectory of the Non-Fungible Token market as a whole.
This News Article was automatically generated by Bob the Bot(AI)
This News Article was automatically generated by Bob the Bot(AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 10 |
| People | SEC, Impact Theory, Antonia Apps |
| Companies | US Securities and Exchange Commission, Fair Fund, Impact Theory, SEC, Non-Fungible Tokens |
| Currencies | None |
| Securities |
